Supply Chain Vocab Test 1

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anchorage
Port charge relating to a vessel moored at approved anchorage site in a harbor
apron
The area immediately in front of or behind a wharf shed on which cargo is lifted. On the "front apron," cargo is unloaded from or loaded onto a ship. Behind the shed, cargo moves over the "rear apron" into and out of railroad cars.
backhaul
To haul a shipment back over part of a route which it has already traveled; a marine transportation carrier's return movement of cargo, usually opposite from the direction of its primary cargo distribution
barge
A large, flat-bottomed boat used to carry cargo from a port to shallow-draft waterways. Barges have no locomotion and are pushed by towboats. A single, standard barge can hold 1,500 tons of cargo or as much as either 15 railroad cars or 60 trucks can carry. A barge is 200 feet long, 35 feet wide and has a draft of 9 feet. Barges carry dry bulk (grain, coal, lumber, gravel, etc.) and liquid bulk (petroleum, vegetable oils, molasses, etc.).
berth
(verb) To bring a ship to a berth. (noun) The wharf space at which a ship docks. A wharf may have two or three berths, depending on the length of incoming ships.
bill of lading
A contract between a shipper and carrier listing the terms for moving freight between specified points.
bonded warehouse
A building designated by U.S. Customs authorities for storage of goods without payment of duties to Customs until goods are removed.
breakbulk cargo
Non-containerized general cargo stored in boxes, bales, pallets or other units to be loaded onto or discharged from ships or other forms of transportation. (See also: bulk and container.) Examples include iron, steel, machinery, linerboard and woodpulp.
bulk cargo
Loose cargo (dry or liquid) that is loaded (shoveled, scooped, forked, mechanically conveyed or pumped) in volume directly into a ship's hold; e.g., grain, coal and oil.
cabotage
Shipment of cargo between a nation's ports is also called coastwise trade. The U.S. and some other countries require such trade to be carried on domestic ships only.
captive cargo port
When most of a port's inbound cargoes are being shipped short distances and most of its export products come from nearby areas, the port is called a captive cargo port. (Contrast with a transit port.)
cargo
The freight (goods, products) carried by a ship, barge, train, truck or plane.
carrier
An individual, partnership or corporation engaged in the business of transporting goods or passengers (See also: ocean carrier.)
cartage
Originally the process of transporting by cart. Today, the term is used for trucking or trucking fees.
channels of distribution
The routes by which products are transported from origin to destination. This includes the physical routes, as well as the different companies involved in ultimately delivering the goods to buyers.
common carrier
Trucking, railroad or barge lines that are licensed to transport goods or people nationwide are called common carriers.
consignment
A shipment of goods. The buyer of this shipment is called the consignee; the seller of the goods is called the consignor.
consolidator
The person or firm that consolidates (combines) cargo from a number of shippers into a container that will deliver the goods to several buyers.
container
A box made of aluminum, steel or fiberglass used to transport cargo by ship, rail, truck or barge. Common dimensions are 20' x 8' x 8' (called a TEU or twenty-foot equivalent unit) or 40' x 8' x 8', called an FEU. Variations are collapsible containers, tank containers (for liquids) and "rag tops" (open-topped containers covered by a tarpaulin for cargo that sticks above the top of a closed box). In the container industry, containers are usually simply called boxes.
container freight station
The facility for stuffing and stripping a container of its cargo, especially for movement by railroad.
container chassis
A piece of equipment specifically designed for the movement of containers by highway to and from container terminals.
container crane
Usually, a rail-mounted gantry crane located on a wharf for the purpose of loading and unloading containers on vessels.
container terminal
A specialized facility where ocean container vessels dock to discharge and load containers, equipped with cranes with a safe lifting capacity of 35-40 tons, with booms having an outreach of up to 120 feet in order to reach the outside cells of vessels. Most such cranes operate on rail tracks and have articulating rail trucks on each of their four legs, enabling them to traverse along the terminal and work various bays on the vessel and for more than one crane to work a single vessel simultaneously. Most terminals have direct rail access and container storage areas, and are served by highway carriers.
containerization
The technique of using a container to store, protect and handle cargo while it is in transit. This shipping method has both greatly expedited the speed at which cargo is moved from origin to destination and lowered shipping costs.
container on flat car (COFC)
A container placed directly on a railroad flatcar without chassis.
contraband
Goods prohibited in trade (such as weapons going to Iran, anything to Cuba). Smuggled goods.
customs
A duty or tax on imported goods. These fees are a major bonus to the economy. In 1999, for example, the U. S. Customs Department collected over $22 billion in fees nationally, which went into the U.S. Treasury. The Customs Department also works to prevent the importation of illegal drugs and contraband.
customs broker
This person prepares the needed documentation for importing goods (just as a freight forwarder does for exports). The broker is licensed by the Treasury Department to clear goods through U.S. Customs. Performs duties related to documentation, cargo clearance, coordination of inland and ocean transportation, dockside inspection of cargo, etc. (Also known as a customhouse broker.)
dead weight tonnage (DWT)
Maximum weight of a vessel including the vessel, cargo and ballast.
deadhead
When a truck returning from a delivery has no return freight on the back haul, it is said to be in deadhead.
deck barge
Transports heavy or oversize cargoes mounted to its top deck instead of inside a hold. Machinery, appliances, project cargoes and even recreational vehicles move on deck barges.
demurrage
A penalty fee assessed when cargo isn't moved off a wharf before the free time allowance ends.
dockage
A charge by a port authority for the length of water frontage used by a vessel tied up at a wharf.
draft
The depth of a loaded vessel in the water taken from the level of the waterline to the lowest point of the hull of the vessel; depth of water, or distance between the bottom of the ship and waterline.
drayage
Transport by truck for short distances; e.g. from wharf to warehouse.
dry bulk
Minerals or grains stored in loose piles moving without mark or count. Examples are potash, industrial sands, wheat, soybeans and peanuts.
dunnage
Wood or other material used in stowing ship cargo to prevent its movement.
duty
A government tax on imported merchandise
electronic data interchange (EDI)
The exchange of information through an electronic format. Electronic commerce has been under intensive development in the transportation industry to achieve a competitive advantage in international markets.
export packers
Firms that securely pack export products into a container to crate to protect the cargo from damage during an ocean voyage.
feeder service
Ocean transport system involving use of centralized ports to assemble and disseminate cargo to and from ports within a geographic area. Commodities are transported between major ports, then transferred to feeder vessels for further transport to a number of additional ports.
foreigner trade zone (FTZ)
Known in some countries as a free zone, a foreign trade zone (FTZ) is a site within the USA (in or near a U.S. Customs port of entry) where foreign and domestic goods are held until they ready to be released into international commerce. If the final product is imported into the U.S., duties and taxes are not due until the goods are release into the U.S. market. Merchandise may enter a FTZ without a formal Customs entry or the payment of Customs duties or government excise taxes. In the zone, goods may be: stored; tested; sampled; repackaged or relabeled; cleaned; combined with other products; repaired or assembled, etc.
freight
Merchandise hauled by transportation lines
freight forwarder
An individual or company that prepares the documentation and coordinates the movement and storage of export cargoes. See also Customs house broker.
gantry crane
Track-mounted, shoreside crane utilized in the loading and unloading of breakbulk cargo, containers and heavy lift cargo.
general cargo
Consists of both containerized and breakbulk goods, in contrast to bulk cargo. See: breakbulk, container, bulk, dry bulk). General cargo operations produce more jobs than bulk handling.
gross tonnage
The sum of container, breakbulk and bulk tonnage.
hostler 0r hustler
A tractor, usually unlicensed, for moving containers within a yard. An employee who drives a tractor for the purpose of moving cargo within a container yard.
interchange
Point of entry/exit for trucks delivering and picking up containerized cargo. Point where pickups and deposits of containers in storage area or yard are assigned.
I.L.A
International Longshoremen's Association, which operates on the East and Gulf Coasts. See labor unions and longshoremen.
I.L.W.U.
International Longshore and Warehouse Union, which operates on the West Coast. See labor unions and longshoremen.
intermodal shipment
When more than one mode of transportation is used to ship cargo from origin to destination, it is called intermodal transportation. For example, boxes of hot sauce from Louisiana are stuffed into metal boxes called containers at the factory. That container is put onto a truck chassis (or a railroad flat car) and moved to a port. There the container is lifted off the vehicle and lifted onto a ship. At the receiving port, the process is reversed. Intermodal transportation uses few laborers and speeds up the delivery time.
IMX
This is transportation shorthand for intermodal exchange. In an IMX yard, containers can be lifted from truck chassis to rail intermodal cars or vice versa.
ISO
International Organization for Standardization. Worldwide organization formed to promote development of standards to facilitate the international carriage and exchange of goods and services. Governs construction specifications for ISO containers.
landlord port
At a landlord port, the port authority builds the wharves, which it then rents or leases to a terminal operator (usually a stevedoring company). The operator invests in cargo-handling equipment (forklifts, cranes, etc), hires longshore laborers to operate such lift machinery and negotiates contracts with ocean carriers (steamship services) to handle the unloading and loading of ship cargoes. (See also: operating port.)
LASH
These 900-foot-long ships carry small barges inside the vessel. LASH stands for Lighter Aboard Ship. Just as cargo is transported by barge from the shallower parts of the Mississippi River to the Port of New Orleans for export aboard ocean-going ships, LASH barges are lifted into these unusual ships. Overseas, the ship can discharge clusters of barges in the open waters. Then several towboats will assemble the barges into tows bound for various ports and inland waterways, without the ship having to spend time traveling to each port.
LCL
The acronym for "less than container load." It refers to a partial container load that is usually consolidated with other goods to fill a container.
LTL
Means a shipment that is "less than truckload". Cargoes from different sources are usually consolidated to save costs.
long ton
A long ton equals 2240 pounds
longshoreman
Dock workers who load and unload ships, or perform administrative tasks associated with the loading or unloading of cargo. They may or may not be members of labor unions. Longshore gangs are hired by stevedoring firms to work the ships. Longshoremen are also called stevedores.
manifest
The ship captain's list of individual goods that make up the ship's cargo.
master
The officer in charge of the ship. "Captain" is a courtesy title often given to a master.
marshaling yard
This is a container parking lot, or any open area where containers are stored in a precise order according to the ship loading plan. Containers terminals may use a grounded or wheeled layout. If the cargo box is placed directly on the ground, it is called a grounded operation. If the box is on a chassis/trailer, it is a wheeled operation.
NVOCC
A non-vessel-owning common carrier that buys space aboard a ship to get a lower volume rate. An NVOCC then sells that space to various small shippers, consolidates their freight, issues bills of lading and books space aboard a ship.
operating port
At an operational port like Charleston, South Carolina, the port authority builds the wharves, owns the cranes and cargo-handling equipment and hires the labor to move cargo in the sheds and yards. A stevedore hires longshore labor to lift cargo between the ship and the dock, where the port's laborers pick it up and bring it to the storage site. (See landlord port.)
pilot
A licensed navigational guide with thorough knowledge of a particular section of a waterway whose occupation is to steep ships along a coast or into and out of a harbor. Local pilots board the ship to advise the captain and navigator of local navigation conditions (difficult currents; hidden wrecks, etc.).
port-of-call
Port at which cruise ship makes a stop along its itinerary. Calls may range from five to 24 hours. Sometimes referred to as "transit port" and "destination port." (See also: home port)
project cargo
The materials and equipment to assemble a special project overseas, such as a factory or highway.
quay
a wharf for use in loading and unloading ships.
railhead
End of the railroad line or point in the area of operations at which cargo is loaded and unloaded.
railyard
A rail terminal at which occur traditional railroad activities for sorting and redistribution of railcars and cargo.
reefer
A container with refrigeration for transporting frozen foods (meat, ice cream, fruit, etc.)
refrigeration or reefer units
The protective cooling of perishable freight by ice, liquid nitrogen, or mechanical devices
ro/ro
Short for roll on/roll/off . A ro/ro ship is designed with ramps that can be lowered to the dock so cars, buses, trucks or other vehicles can drive into the belly of the ship, rather than be lifted aboard. A ro/ro ship, like a container ship, has a quick turnaround time of about 12 hours.
sheddage
Regardless of the length of stay, a vessel is charged a one-time fee for use of shed space and/or marginal (waterside) rail track space. The charge is based on the length of a vessel.
short ton
A short ton equals 2,000. Lifting capacity and cargo measurements are designated in short tons.
steamship
Today, ships that transport cargo overseas are powered by diesel fuel instead of steam. Many people still use the term "steamship," but the more modern term for the service is "ocean carrier" and for the ship itself, "motor vessel."
steamship agent
The local representative who acts as a liaison among ship owners, local port authorities, terminals and supply/service companies. An agent handles all details for getting the ship into port; having it unloaded and loaded; inspected and out to sea quickly. An agent arranges for pilots; tug services; stevedores; inspections, etc., as well as, seeing that a ship is supplied with food, water, mail, medical services, etc. A steamship agency does not own the ship.
steamship company
A business that owns ships that operate in international trade
steamship line
A steamship (ocean carrier) service running on a particular international route. Examples: NSCSA (National Shipping Company of Saudi Arabia), American President Lines (APL), Maersk Sealand, Evergreen, etc.
stevedores
Labor management companies that provide equipment and hire workers to transfer cargo between ships and docks. Stevedore companies may also serve as terminal operators. The laborers hired by the stevedoring firms are called stevedores or longshoremen.
stripping
The process of removing cargo from a container
stuffing
The process of packing a container with loose cargo prior to inland or ocean shipment.
tariff
Schedule, system of duties imposed by a government on the import/export of goods; also, the charges, rates and rules of a transportation company as listed in published industry tables.
terminal
The place where cargo is handled is called a terminal (or a wharf).
terminal operator
The company that operates cargo handling activities on a wharf . A terminal operator oversees unloading cargo from ship to dock, checking the quantity of cargoes versus the ship's manifest (list of goods), transferring of the cargo into the shed, checking documents authorizing a trucker to pick up cargo, overseeing the loading/unloading of railroad cars, etc.
tractor trailer
Some trucks are a solid unit, such as a van, but many have three main units. The front section where the driver sits is called the cab or the tractor (because it pulls a load). Cargo is loaded into the metal box (container), which is loaded onto the wheel base called a chassis or a trailer. These big trucks are often also called 18-wheelers.
trailer on flat car (TOFC)
A container placed on a chassis that is in turn placed on a railroad car.
tramp
A ship operating with no fixed route or published schedule.
transit port
When the majority of cargoes moving through a port aren't coming from or destined for the local market, the port is called a transit (or through) port.
transit shed
The shed on a wharf is designed to protect cargoes from weather damage and is used only for short-term storage. Warehouses operated by private firms house goods for longer periods.
transshipment
The unloading of cargo at a port or point where it is then reloaded, sometimes into another mode of transportation, for transfer to a final destination.
twenty foot equivalent unit (TFEU)
A unit of measurement equal to the space occupied by a standard twenty foot container. Used in stating the capacity of container vessel or storage area. One 40 ft. Container is equal to two TEU's.
vessel operator
A firm that charters vessels for its service requirements, which are handled by their own offices or appointed agents at ports of call. Vessel operators also handle the operation of vessels on behalf of owners.
way bill
The document used to identify the shipper and consignee, present the routing, describe the goods, present the applicable rate, show the weight of the shipment, and make other useful information notations.
wharf
The place at which ships tie up to unload and load cargo. The wharf typically has front and rear loading docks (aprons), a transit shed, open (unshedded) storage areas, truck bays, and rail tracks.
wharfage fee
A charge assessed by a pier or wharf owner for handling incoming or outgoing cargo.
yard
a system of tracks within a certain area used for making up trains, storing cars, placing cars to be loaded or unloaded, etc.
air freight forwarder
provides pickup and delivery service under its own tariff, consolidates shipments into larger units, prepares shipping documentation and tenders shipments to the airlines. Air freight forwarders do not generally operate their own aircraft and may therefore be called "indirect air carriers." Because the air freight forwarder tenders the shipment, the airlines consider the forwarder to be the shipper.
air waybill
a shipping document airlines use. Similar to a bill of lading, the air waybill is a contract between the shipper and airline that states the terms and conditions of transportation. The air waybill also contains shipping instructions, product descriptions, and transportation charges.
bill of lading
a binding contract that serves three main purposes:
1. a receipt for the goods delivered to the transportation provider for shipment;
2. a definition or description of the goods; and
3. evidence of title to the relative goods, if "negotiable".
bill of lading exceptions
• an Act of God,
• a public enemy,
• the authority of law or
• the act or default of the shipper.
broker
an independent contractor paid to arrange motor carrier transportation. A broker may work on the carrier or shipper's behalf.
carmack
An industry term regarding loss or damage of goods. Carmack is governed by 49 U.S.C 14706, which states that a motor carrier must
• issue the Bill of Lading and
• pay the actual loss or injury to the property.
However, carriers limit their liability for release value products, and can limit their damages to $25 per pound or $100,000 per shipment.
cartage agent
A carrier who performs pickup or delivery in areas that a freight mover does not serve.
• Cartage agents use their own paperwork while transporting the shipment.
• The freight mover does not track the shipment while it is in the cartage agent's possession.
• When the freight mover gives a shipment to a cartage agent for delivery, the shipment is considered to be "delivered."
cargo claim
a demand made on a transportation company for payment for goods allegedly lost or damaged while the shipment was in the transportation provider's possession. Pursuant to the National Motor Freight Classification (NMFC) Uniform Bill of Lading, all cargo claims must be filed within 9 months.
overcharge/undercharge
demands on a transportation company for a refund of an overcharge from the erroneous application of rates, weights and/or assessment of freight charges.
COD
A shipment for which the transportation provider is responsible for collecting the sale price of the goods shipped before delivery.
concealed loss
shortage or damage not evident at a delivery
deck trailers
Trailers with rows of tracking on each sidewall and deck load bars. The load bars fit into the tracks to form temporary "decks" on which goods can be loaded. Decks allow more goods to be loaded in the trailer, reduce damage, and speed loading and unloading.
delivery receipt
Document a consignee or its agent dates and signs at delivery, stating the condition of the goods at delivery. The driver takes the signed delivery receipt to the terminal for retention. The customer retains the remaining copy.
dispatch
The act of sending a driver on his/her assigned route with instructions and required shipping papers. The freight mover maintains contact with drivers throughout the day by phone, pager, radio, satellite communication or cellular phone.
exclusive use
A shipper pays a premium rate for the sole use of the trailer. The trailer will be sealed at loading, and the seal number is recorded on the manifest. The seal number is verified before the trailer is unloaded at destination. When a shipper requests an exclusive use trailer, no other freight may be added to the unit even if space permits.
free along side (FAS)
A basis of pricing meaning the price of goods alongside a transport vessel at a specified location. The buyer is responsible for loading the goods onto the transport vessel and paying all the cost of shipping beyond that location.
free on board (FOB)
An acronym for "free on board" when used in a sales contract. The seller agrees to deliver merchandise, free of all transportation expense, to the place specified by the contract. After delivery is complete, the title to all the goods and the risk of damage become the buyer's.